Noel Gifts International Ltd.

Sustainability Report FY2019

2

Table of Contents About Us ......................................................................................................................... 3

Reporting Methodology ................................................................................................... 3

Statement from the Group Managing Director ............................................................. 4

Sustainability at Noel Gifts ............................................................................................ 5

Managing Sustainability-related Risks ............................................................................... 5

Organisational Structure and Sustainability Governance ..................................................... 5

External Charters and Principles ....................................................................................... 5

Stakeholder Engagement ............................................................................................... 6

Materiality Assessment: Managing Risks and Opportunities ....................................... 7

Material Aspects and Indicators Identified ......................................................................... 7

Building Our Workforce ................................................................................................. 9

Management Approach ................................................................................................... 9

Employment ................................................................................................................... 9

Training and Career Development ...................................................................................12

Maintaining our Quality of Service ...............................................................................13

Management Approach ..................................................................................................13

Customer Privacy and Marketing and Labelling .................................................................13

Our Corporate Responsibility Activities........................................................................14

GRI Content Index ........................................................................................................17

3

About Us

The idea behind gifting is simple; it is a way to communicate our heartfelt appreciation for the

people we care about. As a leading hampers, flowers and gifts company, Noel Gifts International

Ltd (“Noel Gifts”, “We”) sought out to bringing people closer by offering premium quality gifts

collection for all occasions. We create new gift designs and packages throughout the year to cater

to the gifting needs of our increasingly discerning customers. With the headquarters in Singapore,

Noel Gifts has, in 1991, ventured abroad through franchising and is the first local gifts company

to have done so. In 2008, Noel Gifts was listed on the SGX Mainboard. [102-01] [102-05] [102-04] [102-

02] [102-03]

Operating in the gifting industry, we understand the importance of integrating sustainability into

all our operations. By doing so, we not only recognise our responsibility to the society, but also,

ensure a social and environmentally responsible business model. [102-16] [102-6]

Last year, we took a more formal approach to show our commitment towards sustainability by

publishing our inaugural sustainability report. We continue showcasing our commitment to

sustainability in this report that outlines our sustainability data gathered over a 12-month period

(the financial year from 01 July 2019 to 30 June 2019). Like last year, our sustainability data is

only reported for our gifting businesses in Singapore. [102-50] [102-54] [102-52]

Reporting Methodology

The methodology used to gather and report sustainability data is in accordance with the Global

Reporting Initiative (GRI) Standards: Core option. The report content is designed based on the

principles outlined by GRI. Sustainability factors material to the company were identified last year

by key stakeholders. These factors have been reviewed again based on current business strategy,

market conditions and stakeholder concerns. The progress on these factors has been monitored

and reported in this report. [102-46]

For this report, we have not sought for external assurance. However, we may seek to externally

assure our future sustainability reports. We strive to be transparent and to provide regular

opportunities for review of our report. For questions or to deliver feedback about this report,

please contact sustainability@noel.com.sg. [102-56] [102-53]

4

Statement from the Group Managing Director

Sustainable growth is fundamental to Noel Gifts’ business. This is a responsibility we carry towards

our stakeholders to make a positive difference economically, socially, and environmentally. As a

sustainable organisation, we place ourselves at a competitive advantage from other gifts company

in Singapore and the region. Last year, we embarked on our inaugural sustainability report, where

we identified and reported Environmental, Social and Governance (ESG) impacts of our

organisation. We are pleased to share with you our second Sustainability report for the financial

year ended 30 June 2019. Through this report, we share our progress in managing these ESG

impacts, to substantiate our continued commitment towards sustainability.

One of our key priorities includes our responsibility towards our employees; safeguarding their

interests, promoting equality, meeting their requirements, fostering their learning and

development. Consequent to the growth of the company there was a 42% increase in the number

of training hours in FY2019 as compared to FY2018. An average employee received 8.65 hours

of trainings. Understanding the need for professional growth, we also provided performance

appraisals and career reviews to more than 85% of all our employees in all job grades.

In FY2019, we introduced the Parent-care Leave (PCL) benefits to all our employees. We are

proud to report that while these benefits have been introduced to support elderly parents, 100%

of our employees have returned to work after their leave ended and have continued to be part

of our organisation.

Customers are one of our key stakeholders and we consider it of utmost importance to safeguard

their privacy and data. We did not receive any reports of substantial complaints on breaches in

customer privacy and data loss in FY2019. We hope to ensure the continuation of our efforts in

protecting our customers’ privacy. Where our product offerings are concerned, we endeavour to

continue the use of fair and responsible marketing practices and comply with regulations and/or

voluntary codes concerning all forms of marketing communication.

Viewing sustainability as a continuous journey towards a more profitable business, we strive to

drive our improvement work towards ambitions within our priority areas. We are committed to

adding value to all our internal and external stakeholders by improving our business performance

sustainably and reporting our year-on-year progress.

Alfred Wong Siu Hong (Managing Director) [102-14]

5

Sustainability at Noel Gifts We live by our vision of Bringing People Closer, Making Everyday Better.

Noel Gifts is about building a business that recognises the needs of our customers and cares for

our employees, the community, and the environment. For us, sustainability is about integrity. We

want all our stakeholders to be confident in our brand, to know that we value our environment

and our community while we are striving for excellence in our operations. [102-16]

Managing Sustainability-related Risks

Managing risks that arise in our operations through a precautionary approach is the first step

towards embracing sustainable growth.

The Board of Directors (the “Board”) is responsible for overseeing the processes for risk

management. The Board, with assistance from the Management, ensures a sound system of

internal controls, and determines the nature and extent of the significant risks. The Management

is responsible to review the Company’s business and operational activities to identify areas of

significant business risks as well as identify appropriate measures to control and mitigate these

risks within the Company’s policies and strategies. [102-11]

Sustainability in Supply Chain

Our supply chain consists of multiple suppliers and vendors that supply the raw materials for our

operations. Risks and opportunities arise in our supply chain around our supplier and vendor

operations. We aim for our suppliers and vendors to enjoy good working conditions, benefits and

opportunities that would resonate to provide a positive impact on the wider community. The

General Manager of Supply Chain oversees the overall supply chain operations of the Group and

ensures all these risks and opportunities are effectively managed. [102-9] [102-10]

Organisational Structure and Sustainability Governance

The Management team under the oversight of the Board, work together to manage sustainability

matters in Noel Gifts. [102-18]

External Charters and Principles

Noel Gifts follows all relevant regulations under the Singapore Exchange (“SGX”) and all other

applicable regulations.

Where possible, the corporate governance practices at Noel Gifts are in line with the Code of

Corporate Governance 2012 (the “2012 Code”). The Board and the Management ensure that Noel

Gifts remain in compliance with other regulations, notices, circulars, and guidelines that may be

released by regulators from time to time. [102-12] [102-13]

6

Stakeholder Engagement

At Noel Gifts, we value the diverse views provided by our various stakeholder groups - including

our employees, shareholders, investors, customers and regulators – on areas where we can

improve our operations. Over the years, we have built a strong relationship with our stakeholders

who have helped us to understand ways to identify sustainability issues within the company. We

have undertaken a strategic approach to improve our relationship with our stakeholders by

enabling continuous and effective modes of dialogues with them.

The table below shows our relationship and interaction with stakeholders during the FY2019.

[102-40] [102-42] [102-43] [102-44]

Stakeholders Mode of Engagement Frequency of Engagement

Customers

Online feedback channel

Newsletter Social media

Bi-annual surveys

Frequently

Suppliers Supplier Performance Feedback Frequently

Regulators Electronic Communications Regularly

Management Board Meetings

Management Meetings

Regularly

Employees Email Communications

Employee engagement programmes

Town hall meetings

Departmental meetings

Regularly

7

Materiality Assessment: Managing Risks and

Opportunities

In 2018, we conducted a stakeholder engagement and materiality assessment session to

understand the concerns and expectations of our stakeholders. During this session, we mapped

topics that are significant to our business and influence our operations, and we identified key

topics prioritized for reporting. This year, we report our progress in managing these topics in our

operations and the goals we have set for performance improvement. [102-47]

The six topics that impact our business are given in the table below. These topics also hold

significance to our stakeholders.

Material Aspects and Indicators Identified

Category Topic Sub-topics we have reported Impact of the

Sub-topic

Economic

GRI 201:

Economic

Performance

Disclosure 201-1: Direct economic value

generated and distributed

Within and

outside the

organisation

Disclosure 201-2: Financial implications and other

risks and opportunities due to climate change

Within and

outside the

organisation

Disclosure 201-3: Defined benefit plan obligations

and other retirement plans

Within the

organisation

Disclosure 201-4: Financial assistance received

from government

Within the

organisation

Social

GRI 404:

Training and

Education

Disclosure 404-1: Average hours of training per

year per employee

Within the

organisation

Disclosure 404-2: Programs for upgrading

employee skills and transition assistance programs

Within the

organisation

Disclosure 404-3: Percentage of employees

receiving regular performance and career

development reviews

Within the

organisation

GRI 401:

Employment

Disclosure 401-1: New employee hires and

employee turnover

Within the

organisation

Disclosure 401-2: Benefits provided to full-time

employees that are not provided to temporary or

part-time employees

Within the

organisation

Disclosure 401-3: Parental leave

Within and

outside the

organisation

8

Category Topic Sub-topics we have reported Impact of the

Sub-topic

GRI 418:

Customer

Privacy

Disclosure 418-1: Substantiated complaints

concerning breaches of customer privacy and

losses of customer data

Within and

outside the

organisation

GRI 202:

Market Presence

Disclosure 202-1: Ratios of standard entry level

wage by gender compared to local minimum

wage

Within and

outside the

organisation

Disclosure 202-2: Proportion of senior

management hired from the local community

Outside the

organisation

GRI 417:

Marketing and

Labelling

Disclosure 417-1: Requirements for product and

service information and labeling

Outside the

organisation

Disclosure 417-2: Incidents of non-compliance

concerning product and service information and

labeling

Within and

outside the

organisation

Disclosure 417-3: Incidents of non-compliance

concerning marketing communications

Within and

outside the

organisation

9

Building Our Workforce

Management Approach

We are only as strong as our employees.

People play a pivotal role in the success of our company. It is our privilege to encourage and

reward employees who showcase unique skills and talents. We seek to foster talent in the

organisation with the goal of sustaining and building a workforce that contributes to our business

success. We also consider it essential to provide equal opportunity to all our employees. Through

a dynamic workforce, we can build our market presence and enhance our organisation’s human

capital.

Nurturing employee talent and skills has always been our focus. We conduct regular training and

career development of our employees to equip them with the right skills and increase their work

efficiency. This keeps our staff motivated to achieve greater professional success.

In FY2019, Noel Gifts signed the Employers' Pledge of Fair Employment Practices under the

Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), to show our

commitment towards building a workplace that respects and values our employees. The Tripartite

Alliance between the Ministry of Manpower, the National Trades Union Congress and the

Singapore National Employers Federation, shares a vision for Singapore to be one of the best

places in the world to work.

As part of this Alliance, we endeavour to recruit and select employees on the basis of merit, treat

employees fairly and with respect, provide employees with equal opportunity to be considered

for training and development based on strengths and needs to help them achieve their full

potential. We also endeavour to reward employees fairly based on their ability, performance,

contributions and experience, abide by laws and adapt to the Tripartite Guidelines on Fair

Employment Practices.

[103-1] [103-2] [103-3]

Employment

We source for talent that would accelerate our success. In FY2019, our hiring rate was 44%,

where women hired were 178% more than the men. Our turnover rate was 56%, which is lower

than the turnover rate recorded in FY2018.

We ensure that we provide our employees with competitive wages. Our operations in Singapore

are where more than 80% of our employees are located. A significant proportion of employees

are compensated based on wages subject to the minimum wage rule.

We invest in our employees to ensure they receive the benefits they deserve. Our full-time

employees receive medical and healthcare benefits. They receive healthcare benefits and other

care packages such as health screening and dental. They are also covered for Disability and

Invalidity. In addition, to make our staff feel included and special, we provide them with gifts on

special occasions. Our staff also receive discounts and credit for staff purchases.

10

Our employees are entitled to ‘Shared Parental Leave’ and ‘Paternity Leave’ as per the

requirements of the Ministry of Manpower in Singapore. In FY2019, no employee took ‘Shared

Parental Leave’ or ‘Paternity Leave’. However, in FY2019, we introduced Parent-care Leave (PCL)

as additional benefits given to all our employees. This was in line with our commitment to support

our employees to attend to their aged parents who have medical conditions. The PCL benefits

supplement the existing leave entitlements. We had 31 employees who took PCL in FY2019. We

are happy to announce that we noted a 100% return to work from all these employees after the

leave ended. These employees have continued to be employed at Noel Gifts 12 months after their

return to work. [401-1] [401-2] [401-3] [202-1] [202-2]

11

Information on Employees

Permanent* Temporary†

Employment

Contract 41

98

3

5

Full-time* Part-time‡

Employment

Type

41

98

2

8

Return from Parent-care Leave Rates Number of

Employees

Total number of employees entitled to Parent-care leave 139 29% 71%

Total number of employees who took Parent-care leave 31 6% 94%

Total number of employees returned to work 31 6% 94%

Total number of employees still with Noel Gifts 12 months

after their return to work (after Parent-care leave) 31 6% 94%

* Full-time employees are also Permanent employees that work 44 hours per week † Temporary are either adhoc or transient employees temporary replacing resigned staff on a short-term employment (less than 3

months)

‡ Part-time employees worked less than 35 hours per week

Parent-care Leave

12

Training and Career Development

In FY2019, we delivered a total of 1,203 hours of training for all our employees. This is about

42% higher than the total hours of training delivered to our employees in FY2018. All employees

received an average of 8.65 hours of trainings. Training programmes designed for employees

were primarily to upgrade their skills and included internal training courses such as sales training,

floral arrangements, product training, etc.

We support the employment and re-employment of employees beyond their official retirement

age. We endeavour to deploy such employees into suitable positions and provide retraining or re-

skilling if necessary under the transition assistance programs that aims to support employees who

are retiring or who have been terminated. [404-1] [404-2]

Our employees and management receive regular performance and career development reviews.

In FY2019, 91% of our management and 85% of our non-management staff received

performance appraisal, which includes 87% of all employees at Noel Gifts.

Career development reviews were received by 93% of our management and 85% of all our non-

management staff. This includes 88% of all employees at Noel Gifts receiving regular career

development reviews. The management and non-management staff not included in the

performance appraisal or career development reviews in FY2019 would be reviewed upon their

confirmation of their employment, during the confirmation assessment. [404-3]

Average Training Hours per Employee Category

Percentage of Employees Receiving Regular Performance Appraisals and Career

Development Reviews

Performance Appraisal Career Development

Reviews

Management 91% 86% 94% 93% 90% 94%

Employee 85% 85% 84% 85% 85% 84%

53%

33%

27%

13

Maintaining our Quality of Service

Management Approach

Our service quality reflects our commitment to our customers. We consider our duty to uphold

the highest standard of customer data privacy protection. We conduct our business in compliance

with all applicable data protection laws that govern the collection, use, disclosure and care of

personal data. Where our product offerings are concerned, we use fair and responsible marketing

practices to keep our customers well informed regarding the product before they make their

purchase. Every year, we review our operations to improve our performance and identify areas

of improvement, to provide the best of services to our customers. [103-1] [103-2] [103-3]

Customer Privacy and Marketing and Labelling

We are happy to report that in FY2019, there were no cases of substantiated complaints

concerning breaches of customer privacy and loss of customer data reported. We also saw no

incidents of non-compliance with regulations and/or voluntary codes concerning product and

service information and labelling, in the reporting period. We are not charged with any case of

non-compliance to regulations and/or voluntary codes concerning marketing communication,

including advertising, promotion and sponsorship either. [418-1] [417-2] [417-3]

14

Our Corporate Responsibility Activities

NOEL GIFTS GIVES BACK BY SUPPORTING TRAFFICKING

SURVIVORS IN SINGAPORE

Dedicated to our Vision of Bringing People Closer, Making Every Day Better, Noel Gifts has always cared for the community, especially the underprivileged. Since the beginning of September 2018, we have been working closely with Hagar to engage the services of trafficking survivors in

Singapore to help with the assembly of ornaments and accessories used in Noel Gifts’ daily floral arrangements. With this initiative in place, Noel Gifts hopes to empower the survivors and create

opportunities within our means to help bring light to broken lives.

Moving forward, Noel Gifts will continue to work with Hagar to bring forth similar meaningful projects for upcoming events such as Christmas. We encourage our stakeholders to join us in

showing their support.

ABOUT HAGAR

Human trafficking affects every country in the world, including Singapore. A registered charity in

Singapore and part of a global organisation in 9 countries, Hagar works closely with the

government to provide restorative care and empowerment support to women and girls who have

been trafficked to Singapore for sexual or labour exploitation. This support includes providing

them with safe accommodation, trauma recovery, legal support, education, vocational skills

15

training and a chance to reintegrate into their families or communities. More information about

Hagar can be found on their official web site: www.hagar.org.sg.

16

$832,000 RAISED FOR NOEL GIFTS – SLEC GALA DINNER

Kind hearts converged at the Noel Gifts – St Luke’s ElderCare (SLEC) Gala Dinner with $832,000

raised and donated as of 22nd October 2018. The meaningful event which was graced by Her Excellency, Madam President Halimah Yacob, took place on 19 October 2018 at Marina Mandarin Singapore, and hosted more than 400 guests which included companies, individuals, and partners

from various agencies and ministries.

In line with our Vision of Bringing People Closer, Making Every Day Better, Noel Gifts has

also made a donation of $100,000 to help support the cause. The donation cheque was received by Mr Timothy Teo, Chairman of St Luke’s ElderCare. St Luke’s ElderCare (SLEC) is a Christian healthcare provider that currently operates 22 eldercare centres. Through this contribution, Noel

Gifts hopes to support SLEC in creating a community of care, in line with SLEC’s Vision for 2030 – “Forge a Community of Care”. Such initiatives could inspire more individuals and companies to step up and do their part for the society. The funds that were raised through this event will be used to support SLEC’s operational expenses, upscale innovation and technology, and sustain

their efforts in caring for the seniors in the community.

The dinner was the first-ever partnership gala event for both SLEC and Noel Gifts aimed at raising

awareness about ageing issues alongside fundraising efforts.

More information on Noel Gifts and St Luke’s ElderCare can be found on their respective websites

at www.noelgifts.com and www.slec.org.sg.

17

GRI Content Index GENERAL DISCLOSURES

General Standard GRI Disclosure Page number(s)

and/or Remark(s) Omissions

ORGANISATIONAL PROFILE

GRI 102:

General Disclosures

2016

102-1 Name of the organisation 3

102-2 Activities, brands, products and services 3

102-3 Location of headquarters 3

102-4 Location of operations 3

102-5 Ownership and legal form 3

102-6 Markets served 3

102-7 Scale of the organisation

10

Refer to Annual Report and Noel

Gifts Website

102-8 Information on employees and other

workers 10

102-9 Supply chain 5

102-10 Significant changes to organisation

and its supply chain

Refer to Annual Report

102-11 Precautionary principle or approach 5

102-12 External initiatives 5

102-13 Membership of associations 5

STRATEGY

GRI 102:

General Disclosures

2016

102-14 Statement from senior decision-maker 4

ETHICS AND INTEGRITY

GRI 102:

General Disclosures

2016

102-16 Values, principles, standards, and

norms of behaviour 5

GOVERNANCE

GRI 102:

General Disclosures

2016

102-18 Governance structure 5

STAKEHOLDER ENGAGEMENT

GRI 102:

General Disclosures

2016

102-40 List of stakeholder groups 6

102-41 Collective bargaining agreements - Not

Applicable

102-42 Identifying and selecting stakeholders 6

102-43 Approach to stakeholder engagement 6

18

GENERAL DISCLOSURES

General Standard GRI Disclosure Page number(s)

and/or Remark(s) Omissions

102-44 Key topics and concerns raised 7,8

REPORTING PRACTICE

GRI 102:

General Disclosures

2016

102-45 Entities included in the consolidated

financial statements

Refer to Annual Report

102-46 Defining report content and topic

boundaries 3

102-47 List of material topics 7,8

102-48 Restatements of information No Changes

102-49 Changes in reporting Not Changes

102-50 Reporting period 3

102-51 Date of most recent report May, 2019

102-52 Reporting cycle Annual

102-53 Contact point for questions regarding

the report 3

102-54 Claims of reporting in accordance with

the GRI Standards 3

102-55 Content Index 17

102-56 External assurance 3

CATEGORY: ECONOMIC

ECONOMIC PERFORMANCE

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary

Refer to the Annual Report

103-2 The management approach and its

components

103-3 Evaluation of the management

approach

GRI 201:

Economic

Performance 2016

201-1 Direct economic value generated and

distributed

201-2 Financial implications and other risks

and opportunities due to climate change

201-3 Defined benefit plan obligations and

other retirement plans

201-4 Financial assistance received from

government

MARKET PRESENCE

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary 9

103-2 The management approach and its

components

19

GENERAL DISCLOSURES

General Standard GRI Disclosure Page number(s)

and/or Remark(s) Omissions

103-3 Evaluation of the management

approach

GRI 202:

Market Presence

2016

202-1 Ratios of standard entry level wage by

gender compared to local minimum wage 9

202-2 Proportion of senior management hired

from the local community 9

CATEGORY: SOCIAL

TRAINING AND EDUCATION

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary

9,12

103-2 The management approach and its

components

103-3 Evaluation of the management

approach

GRI 404:

Training and

Education 2016

404-3 Percentage of employees receiving

regular performance and career development

reviews, by gender and by employee category

12

404-1 Average hours of training per year per

employee

404-2 Programs for upgrading employee skills

and transition assistance programs

EMPLOYMENT

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary

9

103-2 The management approach and its

components

103-3 Evaluation of the management

approach

GRI 401:

Employment 2016

401-1 New employee hires and employee

turnover

9,10,11

401-2 Benefits provided to full-time employees

that are not provided to temporary or part-

time employees

401-3 Parental leave

CUSTOMER PRIVACY

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary 13

103-2 The management approach and its

components

20

GENERAL DISCLOSURES

General Standard GRI Disclosure Page number(s)

and/or Remark(s) Omissions

103-3 Evaluation of the management

approach

GRI 418:

Customer Privacy

2016

418-1 Substantiated complaints concerning

breaches of customer privacy and losses of

customer data

13

MARKETING AND LABELLING

GRI 103:

Management

Approach 2016

103-1 Explanation of the material topic and its

boundary

13

103-2 The management approach and its

components

103-3 Evaluation of the management

approach

GRI 417:

Marketing and

Labelling 2016

417-2 Incidents of non-compliance concerning

product and service information and labeling 13

417-3 Incidents of non-compliance concerning

marketing communications